new to me 7.3 psd overheating

[dm88]

So i picked up 95 f350 long bed crew cab ps today! but on the ride home it was overheating popped the hood and heard hissing from the res cap so replaced that and it got much better no more going into the red buuuuuuut im still getting like 3/4 of the way up. the level of the coolant is fine after i added 5 gallons. seems like tstat is working.
is it normal for the upper rad hose to be empty when it cools down? it has pressure after driving it for awhile but once it cools down its bone dry. im no expert but air in the system is no good right?
the needle goes up to about the end of the word normal on the gauge is that normal?
thanks for any replies!